Prologis warehouse buy is Chicago’s priciest of 2021

Industrial giant’s deal for 340K sf complex continues aggressive pace of acquisitions

 Prologis CEO Hamid Moghadam and 930 West Evergreen Avenue (Google Maps)
Prologis CEO Hamid Moghadam and 930 West Evergreen Avenue (Google Maps)

Remember when industrial real estate was a steady but boring sector, about as eye-catching as its architecture is interesting? Wasn’t so long ago.

But Amazon, e-commerce and the pandemic have combined to make that description an anachronism.

In the largest commercial investment sale in Chicago this year, Prologis paid nearly $100 million for a Goose Island warehouse and office building, Crain’s reported. The deal for the 339,000-square-foot building at 930 West Evergreen Avenue continues Prologis’ aggressive pace of acquisitions over the last year.

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It was also a profitable deal for the sellers, Related Fund Management — an investment arm of Related Companies — and Connecticut-based Greenfield Partners. The duo acquired the property less than two years ago from Mars Food for $73 million, according to the report. The two companies are long-term tenants in the property through their joint venture, Quiet Logistics, an e-commerce fulfillment firm created in 2019, Crain’s noted.

The rest of the building is fully leased to a pair of companies.

Chicago’s industrial market has always been a strong performer, but Amazon has helped thrust it into the spotlight. From March through July of last year, the e-commerce giant leased 11 million square feet of distribution centers and warehouses in the Chicago area, helping drive up prices across the sector.

[Crain’s] — Alexi Friedman